Strayer Education, Inc. (STRA) boasts a return on equity (ROE) of 43%, surging past the industry average of 11%. Equally as impressive is the fact that Strayer’s balance sheet shows no debt.

Company Description

Strayer Education, an education services holding company, owns Strayer University and certain other assets. The company’s mission is to make higher education achievable and convenient for working adults in today’s economy.

Strayer offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health care, and public administration to more than 44,000 working adult students at 60 campuses in 12 states, Washington, D.C. and worldwide via the Internet.

Founded in 1892, Strayer University is accredited by the Middle States Commission on Higher Education.

Quarterly Results Reflect Solid Growth

The company posted third-quarter revenue growth of 25% on a year-over-year basis. Net income increased to $11.8 million from $9.3 million last year. This translates into earnings per share of 83 cents, which topped analyst estimates by 2 cents.

This was the fourth time in the last four quarters that Strayer exceeded the consensus estimate by an average of 4 cents or 2.65%.

Strayer also noted that during the quarter enrollment jumped 24% to 44,564.

Guidance Raised

After the solid quarter, Strayer boosted its fourth-quarter guidance, saying it now expects to earn between $1.68 and $1.70 per share. The company expects full-year earnings to be between $5.65 and $5.67 per share.

Both the quarterly and full-year outlook is in line with analyst forecasts.

More Favorable Fundamentals

Strayer boasts a return on equity (ROE) of 43%, surging past the industry average of 11%. Equally as impressive is the fact that Strayer’s balance sheet shows no debt.

Higher Income

Strayer hiked its annual divided to $2 per share from $1.50, which translates into a quarterly dividend of 50 cents per share, an increase from 37.5 cents. The first distribution of the higher dividend will occur on December 10 to shareholders of record as of November 26.

The company added that its board amended a share-buyback program to authorize the repurchase of up to $100 million worth of the company’s common stock over the next 14 months. As of September 30, Strayer had more than 14.2 million common shares outstanding.

Content Courtesy: Zacks Investment Research

#1 Ranked Stocks Highlight Archive
To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

1. (BDX) Becton, Dickinson and Company – return on equity (ROE) of 23%, exceeding the industry average of 17%Becton, Dickinson and Company (BDX) offers a return on equity of 23%, exceeding the industry...
2. (QCOM) – QUALCOMM – return on equity (ROE) of 20% is well above the industry average of 2%QUALCOMM Inc. (QCOM) continues to boast strong fundamentals that signal growth, and analysts keep raising...
3. (QCOM) – QUALCOMM Inc – return on equity (ROE) of 20% is well above the industry average of 2%QUALCOMM Inc. (QCOM) continues to trade near a 52-week high even in the face of...
4. (QCOM) – QUALCOMM Inc – return on equity (ROE) of 20% is well above the industry average of 2%QUALCOMM Inc. (QCOM) continues to trade near a 52-week high even in the face of...
5. (EOG) – EOG Resources – return on equity (ROE) of 23% stands above the industry average of 18%EOG Resources (EOG) recently reported adjusted non-GAAP earnings of $2.52 per share for the second...
6. (STRA) – Strayer Education – aggressively expanding its presence in its primary eastern U.S. marketsStrayer Education, Inc. (STRA) has seen an up tick in its enrollment and revenue due...

Search Posts by Tag: STRA | VitalStocks | Education & Training Services | Services

RSS Feeds by Tag: STRA | VitalStocks | Education & Training Services | Services |

Other Posts by: Shawn | RSS Feed for this author